Fair Launch Project: HYPE

What Is HYPE?

How Does HYPE Liquidity Mining Work?

  • 75% is redistributed back to liquidity providers in each respective HYPE/X pool
  • 6.25% converted to BUILD and sent to BUILD DAO treasury (a community of builders),
  • 6.25% gets distributed to the BUILD/ETH liquidity providers, and the remaining
  • 12.5% goes towards incentivising the next HYPE/X liquidity pool, chosen by community vote.

When Does HYPE Accrue Value?

  1. As transaction volumes increases, more tax revenues are generated;
  2. Boosting yields, which attracts more LPs.
  3. As LPs move out of pools, more tax revenues are generated to create new pools;
  4. As more pools are created and successfully seeded, more streams of revenue begin to flow;
  5. As more pools are added, and as prices between currency pairs diverge, more triangular arbitrage opportunities are created, incentivising arbitrage bots to contribute yet even more transaction volumes and tax revenues for HYPE and BUILD stakeholders.

External Links

A Path Towards Perpetual Farming

Article 2. Mitigating the “Adverse Selection” Problem for AMM LPs with withdrawal transfer taxes

  1. Early LP exiters have negative externalities on lagging liquidity providers.
  2. Large LP exiters have large negative effects on the rest of the pool when they exit (as they are effectively large volumes of “toxic order flow”)
  1. Withdrawal of large amounts of liquidity increases price impact
  2. Subsequent large blocks of sales have larger price impact
  3. Price expectations drop sharply, causing a cascade of fear as more and more LPs rush for the exit.
  4. Traders catching falling knives learn that the sell-off is unexpectedly large, due to these cascading effects.

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Fair Launch Finance

Fair Launch Finance

Bridging retail investors and talent start-ups

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